I often think about the future and whether we’ll be able to help Miss
Peer to peer lending is something that has been growing in popularity in the last few year with Lending Works launching around eighteen months ago. It’s a different way of lending and borrowing money instead of the usual route of going to see the bank manager to ask for money.
As a lender, I think it’s another option for long term lending as the rates returned to you are a lot better than banks, however you have to be prepared to tie your money up for longer periods of time. It’s becoming increasingly popular with people thinking about their retirement and including investing in their plans. Your money is still safe should the borrower default on their loan due to the insurance against borrower defaults.
The return on investing sits at between 5.1% over 3 years and 6.4% over 5 years. As a long term investment option currently the return is a lot better than my ISA is providing to me even if I open a new account each financial year.
I can totally understand how a lot of the older generation may be using this option to enable their golden years to be a little more comfortable.
How do you save for the future?
Disclosure – PR collaboration